**Summary:**
The Government of India, Ministry of Finance, Department of Economic Affairs, announces the sale reissue of the "7.50 per cent Government Stock, 2034" for an aggregate amount of ₹2,000 crore nominal. This reissue is governed by the terms and conditions outlined in this notification (F. No.4/3/WM/2016) and the General Notification F. No. 4/13/WM/2008, dated October 8, 2008.
The sale will be conducted through the Reserve Bank of India (RBI), Mumbai Office, via a price-based auction using the multiple price auction method. Up to 5% of the notified amount will be allotted to eligible individuals and institutions through a non-competitive bidding facility.
The auction will be held on October 21, 2016, by the Reserve Bank of India, Mumbai Office. Electronic bids must be submitted through the RBI’s e-Kuber system on the same date. Non-competitive bids are to be submitted between 10:30 a.m. and 11:30 a.m., while competitive bids are accepted between 10:30 a.m. and 12:00 noon.
The stock is eligible for When Issued trading, as per RBI guidelines. It has a thirty-year tenure commencing from August 10, 2004, and will be repaid at par on August 10, 2034.
The results of the auction will be displayed by the RBI at its Mumbai office on October 21, 2016. Payment by successful bidders is due on October 24, 2016, which is also the date of reissue. This payment includes accrued interest from August 10, 2016, to October 23, 2016.
Interest at a rate of 7.50% per annum will accrue on the nominal value of the stock and will be paid semi-annually on February 10 and August 10.
For further information, contact the Joint Secretary to the Government of India, Prashant Goyal.
Key Entities Referenced
Ministry of Finance: The ministry responsible for the financial matters of the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India, responsible for economic policy and related matters.
7.50 per cent Government Stock, 2034: A specific government security being reissued, maturing in 2034 and carrying an interest rate of 7.50 percent.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai, Maharashtra: The city where the Reserve Bank of India's office is located, which is conducting the auction.
General Notification F. No. 4 13WM2008, dated October 8, 2008: A prior notification providing the general terms and conditions for government stock auctions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme that allows eligible individuals and institutions to bid for a portion of the government stock without competing in the price-based auction.
Prashant Goyal: Joint Secretary to the Government of India, signatory of the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated October 17, 2016
NOTIFICATION
Auction for Sale (Re-issue) of ‘7.50 per cent Government Stock, 2034'
F. No.4 (3)-W&M/2016(ii) : Government of India hereby notifies sale (reissue) of ‘7.50 per cent
Government Stock, 2034’ (hereinafter called 'the Stock') for an aggregate amount of ` 2,000 crore
(nominal). The sale will be subject to the terms and conditions spelt out in this notification (called ‘Specific
Notification’) as also the terms and conditions specified in the General Notification F. No. 4 (13)–
W&M/2008, dated October 8, 2008 issued by Government of India.
Method of Issue
2. The Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400 001 in the
manner as prescribed in paragraph 5.1 of the General Notification F. No. 4 (13)–W&M/2008, dated
October 8, 2008 by a price based auction using multiple price auction method.
Allotment to Non-competitive Bidders
3. The Government Stock up to 5 % of the notified amount of the sale will be allotted to eligible individuals
and institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions of
Government Securities (Annex).
Place and date of auction
4. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on
October 21, 2016. Bids for the auction should be submitted in electronic format on the Reserve Bank of
India Core Banking Solution (E-Kuber) system on October 21, 2016. The non-competitive bids should be
submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between
10.30 a.m. and 12.00 noon.
When Issued Trading
5. The Stock will be eligible for “When Issued” trading in accordance with the guidelines issued by the
Reserve Bank of India.
Tenure
6. The Stock will be of thirty-year tenure commencing from August 10, 2004. The Stock will be repaid at
par on August 10, 2034.
Date of issue and payment for the stock
7. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai office on
October 21, 2016. The payment by successful bidders will be on October 24, 2016, i.e., the date of re-
issue. The payment for the Stock will include accrued interest on the nominal value of the Stock allotted in
the auction from the date of last coupon payment i.e., August 10, 2016 to October 23, 2016.
Interest
8. Interest at the rate of 7.50 per cent per annum will accrue on the nominal value of the Stock from the
date of last coupon payment and will be paid half yearly on February 10 and August 10.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India